April 23, 2014, Introduced by Rep. Stallworth and referred to the Committee on Insurance.
A bill to amend 1956 PA 218, entitled
"The insurance code of 1956,"
by amending sections 2106 and 2108 (MCL 500.2106 and 500.2108), and
by adding section 2108a.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 2106. (1) Except as specifically provided in this
chapter,
the provisions of chapter 24 and chapter 26 shall do not
apply to automobile insurance and home insurance.
(2) An insurer may use rates for automobile
insurance or home
insurance
as soon as those the rates are filed.
(3) An insurer may use rates for automobile insurance as
provided in section 2108a.
(4) To the extent that other provisions of this code are
inconsistent
with the provisions of this chapter, this chapter
shall
govern governs with respect to automobile insurance and home
insurance and, with the exception of establishing rates, automobile
insurance.
Sec.
2108. (1) On the effective date thereof, each insurer
shall
file with the commissioner every of
a manual of
classification,
every manual of rules and rates, every rating plan,
and
every or modification of a manual of classification, manual
of
rules
and rates, or a rating plan which it that an insurer proposes
to
use for automobile insurance and home insurance, the insurer
shall file the manual or plan with the director.
(2) At least 15 days before the effective date of a manual of
classification, manual of rules and rates, rating plan, or
modification of a manual of classification, manual of rules and
rates, or rating plan that an insurer proposes to use for
automobile insurance, the insurer shall file the manual or plan
with the director.
(3) Each filing shall under subsection (1) or (2) must state
the
character and extent of the coverage contemplated. Each An
insurer
that is subject to this chapter who and that maintains
rates in any part of this state shall at all times maintain rates
in effect for all eligible persons meeting the underwriting
criteria of the insurer.
(4) (2)
An insurer may satisfy its
obligation to make filings
under subsection (1) or (2) by becoming a member of, or a
subscriber to, a rating organization licensed under chapter 24 or
chapter
26 which that makes those the filings, and by filing
with
the
commissioner director a copy of its authorization of the rating
organization
to make those the filings on its behalf. Nothing
contained
in this This chapter shall be construed as requiring any
does not require an insurer to become a member of or a subscriber
to
any a rating organization. Insurers An insurer may file and use
deviations
from filings made on their its
behalf. , which The
deviations
shall be are subject to the provisions of this chapter.
(5) (3)
Each A filing shall under this section must be
accompanied by a certification by or on behalf of the insurer that,
to
the best of its the
insurer's information and belief, the
filing
conforms to the requirements of this chapter.
(6) (4)
Each A filing shall under this section must include
information that supports the filing with respect to the
requirements of section 2109. The information may include 1 or more
of the following:
(a) The experience or judgment of the insurer or rating
organization making the filing.
(b) The interpretation of the insurer or rating organization
of
any statistical data it relies upon.on.
(c) The experience of other insurers or rating organizations.
(d) Any other relevant information.
(7) (5)
A The department shall make a
filing under this
section
and any accompanying information shall
be open to public
inspection
upon on filing.
(8) (6)
An insurer shall not make, issue,
or renew a contract
or
policy except in accordance with filings which that are
in
effect
for the insurer pursuant to under
this chapter.
Sec. 2108a. (1) The director shall review a manual or plan
filed under section 2108(2) and the accompanying supporting
information as soon as reasonably possible after it is filed to
determine whether the manual or plan meets the requirements of this
chapter.
(2) Except as provided in subsection (3) or (4), a rate in a
manual or plan filed under section 2108(2) is effective and may be
used 15 days after it is filed.
(3) Within the 15-day period under subsection (2), the
director may extend the 15 days for an additional period not to
exceed 15 days by giving written notice of the extension to the
insurer or rating organization that filed the manual or plan and
advising the insurer or rating organization that the director needs
additional time to consider the manual or plan. If the director
extends the 15-day period under this subsection, a rate in the
manual or plan is effective and may be used after the expiration of
the extended period
(4) On written application by an insurer or rating
organization, the director may authorize a rate in a manual or plan
that the director has reviewed under this section to be effective
and be used before expiration of the 15-day period under subsection
(2) or any extended period under subsection (3).
(5) A manual or plan filed under section 2108(2) with
accompanying supporting information is considered to meet the
requirements of this chapter unless it is disapproved by the
director within the 15-day period under subsection (2) or any
extended period under subsection (3).
(6) If within the 15-day period under subsection (2) or any
extended period under subsection (3) the director determines that a
manual or plan filed under section 2108(2) does not meet the
requirements of this chapter, he or she shall send to the insurer
or rating organization that filed the manual or plan a written
notice of disapproval specifying in what respects the manual or
plan fails to meet the requirements of this chapter and stating
that the rates in the manual or plan will not be effective and that
the insurer shall not use the rates.
(7) An insurer or ratings organization may seek relief from a
decision by the director under this section as provided in section
2482.